Netflix Backs Out of Warner Bros. Bid as Paramount Skydance Emerges as Winner
Feb 26th 2026
Netflix will not raise its bid for Warner Bros., saying the price would be unattractive, clearing the path for David Ellison’s Paramount Skydance after Warner Bros. called its offer superior.
- Netflix declined to match Paramount Skydance’s latest offer, calling the deal no longer financially attractive.
- Warner Bros. board deemed Paramount Skydance’s proposal the superior offer.
- Paramount Skydance offered $31 per share plus a $0.25 per quarter ticking fee starting after Sept. 30, 2026 and a $7 billion regulatory termination payment.
- Paramount agreed to cover the $2.8 billion termination fee that Warner Bros. would owe Netflix, meaning Netflix is set to receive that payment.
- Netflix shares rose more than 10 percent in after-hours trading after the announcement.
- Netflix said it will invest about $20 billion in content this year and will resume its share repurchase program.